The minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing.
Minimum contributions are increasing in two phases. The first increase must be in place from 6 April 2018 and the second from 6 April 2019.
Most employers use pension schemes that currently require a total minimum of 2% contribution to be paid. The calculation for this type of scheme is based on a specific range of earnings. For the 2017/18 tax year this range is between £5,876 and £45,000 a year (£490 and £3750 a month, or £113 and £866 a week).
This table shows the minimum contributions you must pay and the date when they must increase:
|Date||Employer minimum contribution||Staff contribution||Total minimum contribution|
|Until 5 April 2018||1%||1%||2%|
|6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
The staff contribution rate may vary depending on the type of tax relief applied by your scheme. If you are unsure check your scheme documents.